Published: May 20, 2022 |

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American Resources Corporation said it has signed a carbon offtake agreement along with a non-dilutive financial commitment of $2.5 million with a long-standing customer and premier supplier of metallurgical carbon to the global steel and alloy metal marketplace, Integrity Coal Sales, to start its Carnegie 2 mine.

The company said this incremental production will enable it to benefit from the current strength in the high volume metallurgical carbon market, aligning the risk and return for both Integrity and American Resources.

“Integrity Coal Sales has been a strong customer and partner of ours for a number of years, and we are focused on working together for everyone’s success,” CEO Mark Jensen said in a statement.

“Together, we’re developing long term opportunities to expand low-cost metallurgical carbon production to feed global steel demand for the infrastructure market,” Jensen added.

High volume metallurgical carbon is not burned for energy use, American Resources explained. Instead, specific characteristics allow it to be blended with iron to make new steel. This quality of product is in high demand in the current market environment given many of the producers in the U.S. are producing from old mines that are expensive to operate and coming to end-of-life.

American Resources said it is focused on mine plans and operations that are built to be low cost once ramped ranging from 20-40+ years while also making them safer and more productive operations. Post-initial production ramp Carnegie 2 is anticipating adding $25-$35 million in additional yearly revenue to the company’s top line with attractive margins, it added.

“Finalizing the development of the Carnegie 2 mine coupled with the very strong market for high volume metallurgical carbon in the international markets provides a very attractive return on capital for our shareholders,” Jensen said.

“This will further expand our production out of the McCoy Elkhorn complex while we are also expanding our Carnegie 1 mine production capabilities,” Jensen added.

The company said it continues to focus on running efficient and streamlined operations, being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality.

By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, it said it works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy while being able to scale its operations to meet the growth of the markets it serves.

American Resources is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. It has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia, where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.

Source: Proactive Investors

About American Resources Corporation
American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs.

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